Jot Condie (center) is flanked by Mike McCallum, chief strategy officer with the National Restaurant Association and Harald Herrmann, president & CEO of Yard House Restaurants, and CRA Chairman.
PHOTO COURTESY OF THE CRA
IN THEIR
How important is the hospitality industry to the state of California and the nation as a whole? We are the second largest private sector employer in the state – healthcare is No. 1. We have a workforce of 1.4 million. This year in California, our industry is projected to exceed $60 billion in sales. And, we generate $4.5 billion in tax revenue for the state. Nationally, our annual sales outnumber the U.S. Agriculture, the U.S.
What steps did the CRA take in the last few years to help the industry weather the recession? We have stepped up our efforts with our industry’s service providers to maximize savings for our membership. And, we continue to work at all levels of government to identify areas where we can change the law and reduce our liabilities. For example, we advocated for the passage of the Durbin Amendment, which was part of the Wall Street Reform and the Consumer Protection Act. It went into effect on Oct. 1 and restaurants can expect substantial savings in processing fees as a result. Our partners, such as Heartland Payment Systems, will pass 100 percent of the savings back to their customers, which averages about $1,000 per restaurant. In any economy, that is real money. Have your members begun to see business returning to normal? There is a lot of talk within our industry about the “new normal.” That is, people are less likely to return to their “old” normal dining out behavior, even when the economy rebounds. I’m not sure we agree with that theory. But the real “new normal” is that – through this recession – restaurant operators retooled operations to be more efficient and became more creative with their offerings to keep costs down and traffic up. That is the real “new normal.” I’m confident that when the economy does rebound the restaurant dining public will come back strong. All of our indicators suggest there is still a lot of pent-up demand for dining out. But, the recent employment numbers and economic indicators suggest that we’ve got another 12 months or so before we get our groove back. But, we will get it back.
FALL 2011
Every few years, there is a new governor and new set of legislators, which means a new agenda for the state of California. How does the CRA decide which measures to support and which measures to oppose? The state’s agenda is constantly shifting with the economic and political winds. That agenda comes at us in the form of the annual state budget and the roughly 3,000 pieces of legislation introduced every year. We analyze every proposal and then narrow our focus on the measures that directly affect our industry. Typically we end up actively lobbying on about 200 measures per year. The policy objectives set by the CRA Board of Directors are central to our process when deciding on which measures to engage our advocacy efforts. Of course, depending on those economic
Before joining the CRA, you worked as a lobbyist for the Southern California Air Quality Alliance, a consortium of aerospace, manufacturing and high-tech companies. What are some transferable skills you have used in each of these industries? From a lobbying perspective, most of the skills are transferable. You must have a 360-degree view of your risks, know how government’s many cogs work when they’re simultaneously in motion and master the legislative rules, constitutional requirements and parliamentary procedure. Then, you must have a deep understanding of what motivates your adversaries and work so they have an equal depth on what motivates your membership. Essentially you have to be part political scientist, part anthropologist. But most of all, you have to be fearless and aggressive on behalf of your membership, which is another long conversation.
airline, and motion picture industries – combined. So, we are important.
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like training, insurance, marketing and credit card processing. The size of our membership enables us to offer discounts that many restaurant owners cannot get on their own. We also have a legal help line for our members and publish “Industry Insights” that covers every imaginable compliance, legal, and regulatory issue confronting our industry.
and political winds some years are easier than others. One year, we can safely navigate our industry through the proverbial intersection with the state’s agenda. And in another year, it can be a collision. In either case, our state’s large restaurant presence and contribution to the economy always make us a formidable voice in any debate. Staying with the traffic metaphor – these next few years will require side airbags and a loud horn.
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